The UAE has been ranked as the world's leading real estate investment destination in a new property market league table, as the industry retains momentum amid challenges posed by the Iran war.
Arada's UAE Property Investment Index – conducted on behalf of the Dubai developer by US-based Penta Group – found that 56 per cent of global investors have serious interest in the UAE’s property market.
The Emirates took top spot, above major international destinations such as the US (54 per cent), the UK (41 per cent), France (28 per cent) and Spain (27 per cent).
The survey was carried out from April 1 to April 23 across 12 key markets and among 689 established property investors.
The UAE’s appeal was particularly strong for investors in nearby markets, with 91 per cent of Indian investors, 92 per cent of Egyptian investors and 85 per cent of Saudi investors naming the country as a top three destination.
Among European investors, the UAE was the top choice outside their home country for French investors at 63 per cent, German investors at 60 per cent and Swiss investors at 57 per cent.
Strong potential returns were the number one investment driver globally at 38 per cent, with Australian investors at 57 per cent, Spanish investors at 56 per cent and British investors at 41 per cent all ranking return potential as their primary consideration.
Safety and stability was the defining factor for Chinese investors at 65 per cent and German investors at 58 per cent, while the UAE's regulatory framework, political stability and transparent property laws made it one of the world's most trusted environments for property investment.
Ease of purchase and ownership was named by 34 per cent of respondents overall, rising to 57 per cent among Saudi investors and 41 per cent among Egyptian investors.
“These findings confirm what we have observed in our own sales performance – that despite recent headwinds international investors recognise the UAE's structural advantages in regulatory maturity, track record of performance and stable economic fundamentals,” said Ahmed Alkhoshaibi, group chief executive of Arada.
“Continued adaptation has been key to the UAE’s rise as a global investment destination – whether it’s the pandemic or the financial crisis, this country has demonstrated time and again that it adjusts fast and better than anywhere else in the world.”
The UAE continues to push ahead with large-scale infrastructure projects, including the launch of Etihad Rail passenger services this year, the opening of the Dubai Metro Blue Line in 2029 and the Gold Line three years later.
Buyers market
Dubai’s property market has boomed year on year since recovering from the Covid-19 pandemic, but in April experienced its first decline in six years.
The situation has led to a rise in demand for deals, with prospective buyers returning to the market hoping to find better value.
Dubai's residential property market has entered its most favourable conditions for buyers in several years, with villa prices stabilising, transaction volumes slowing and sellers showing greater willingness to negotiate, according to industry experts and market data released in May.
